I know a CPA and they have noted that there have been calls from wealthy clients looking for loopholes to save money on taxes, based on the stimulus.
Money not payed in taxes isn't quite the same as getting it back, but in the end its a fair amount of money kept by an idividua and not being sent to the government . Seems kinda shady to me, to put something like this in a bill that's trying to help lower to moderate income individuals financial survive a pandemic.. But I'm old and cynical.
The fundamental way our tax code is broken is not loopholes, but the actual publicly known tax bracket rates. They should be higher for capital gains, the progressive rate graduation should be steeper, and 500k shouldn't be the highest tax bracket when there are people who make 10,000 times that in a year. It's unbelievable that this isn't the focus of the issue and people are instead harping on wealth taxes and loopholes.
edit: should also note that capitalism expects wealth concentration, but it's not a pre-condition.
Say your pass-through entities has 100k in revenue. You could pay yourself 140k and mark down 40k of losses but that's financially disadvantageous because you're tax rate on the income will be higher than the tax rate on the losses. You're paying 13k in extra taxes to avoid paying 8k, donating an extra 5k to the IRS.
Most companies try to shift revenue from income to profits because it will reduce your total tax burden.
If your company has $100k to play with, paying $200k salary to take $100k loss is not a good move.
Don't forget the previous tax break also ;)
because of additional language that applies the policy retroactively “so losses in 2018 and 2019 can be ‘carried back’ against the past five years.”
https://news.ycombinator.com/newsguidelines.html
The guidelines also, for several good reasons, ask you not to post about "brigading" and the like. These perceptions are nearly always imaginary, as the current example illustrates. Everyone sees something they don't like and says "aha! brigading!". Nobody sees it change to the opposite and then says "oh! guess I was wrong about that." I've looked at the data on this closely for years, and the conclusion is that with rare exceptions (and I do mean rare) it is all cognitive bias of the purest form. Cognitive bias plus randomness equals narrative. It also equals noise in HN threads—and it evokes worse from others who have the opposite bias and take it as flamebait against their side.
https://hn.algolia.com/?sort=byDate&dateRange=all&type=comme...
https://hn.algolia.com/?dateRange=all&page=0&prefix=true&que...
(Edit: something like slashdots categories could work but you’d need some incentive to be truthful rather than trust them to separate a “troll” from a “disagree”.)
Plus, if anything, I’d say it’s more common for there to be a bias against downvoting relative to upvoting.
https://hn.algolia.com/?dateRange=all&page=0&prefix=true&que...
Edit: I took a look at your account's recent comments because often we just remove rate limits when the problem has been corrected. Unfortunately, in this case the opposite is true. Would you please stop using HN primarily for political and ideological battle? It destroys the curious conversation that HN is intended for, so we have to ban accounts that do it.
You're posting too fast. Please slow down. Thanks.I try to up vote at least twice as much as I down vote. If I down vote a a low quality comment, I try to at least up vote 2 quality ones to offset it.
However, this will only occur if they took losses, so it is really a discount of ~35% on negative income. This would also apply to someone who is not rich, i.e. a software dev sole proprietor who cashed out big losses in March in the stock market and then applied those losses against their normal income to end up reporting 64k in income instead of 100k (normally 36k in losses would have to be stretched over 12 years of tax returns).
I understand this doesn't fit the narrative, but please comment if it is incorrect instead of downvoting.